VincePrince

BTC, Builds GIGANTIC Trianlge- Or Bull-Flag-Formation!

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Hello,

Welcome to this analysis about Bitcoin and the weekly timeframe perspectives. In recent times Bitcoin is still holding above the 40 .000 USD which is initially a good sign however there are also still strong resistances above in the structure and in case Bitcoin pulls back from these this can lead to a move below the important psychological level of 40 .000 USD again, in this case, it will be crucial in terms of the main formations forming for Bitcoin I spotted. The news is more positive for Bitcoin as Robinhood the well known online broker is launching its cryptocurrency wallet services and the congressman of Paraguay announced that he is going to make Bitcoin an official currency, all these developments showing Bitcoin is fundamentally moving forward and in this case, the actual price-action-developments are also pivotal therefore Bitcoin has to process the good news and convert it into the necessary demand boost, in this manner I detected two main potential formations to keep an eye on.

Looking at my chart we can watch there Bitcoin moving in this massive high-base formation with the developments above the 100-EMA in red as well as the 65-EMA in green. Above these pivotal reference-levels Bitcoin is forming this massive potential triangle-formation with the coherent wave-count within the formation and the waves A to B almost already completed. In the next times there is a higher likelihood given that Bitcoin continues with the wave-count within the triangle-formation and in this terms with the establishment of the waves C to E which will continue if Bitcoin breaks the 40 .000 USD level. When this happens Bitcoin will have the ability to complete this massive triangle with a bullish breakout to the upside nevertheless when Bitcoin shows up with exceptional increased bearish pressure in the schedule this whole triangle-formation can also initially invalidate to the downside which will happen with Bitcoin breaking below the lower boundary instead of the upper-boundary, this will lead Bitcoin to develop a wave-E-extension to the downside, in this case, the major massive bull-flag will have the potential to rightly complete.

In case Bitcoin shows up with the triangle-invalidation and the bearish continuation the key support, in this case, is at the 19.200 USD level which previously was the all-time-high , when Bitcoin bounces in this area and continues to the upside this will lead to the appropriate completion of this paramount formation as a bull-flag. These are the two main considerations and scenarios significant in the next times. It is important to await either the triangle- or the bull-flag validation, when this is done the next measurements can be done with the major wave-C-developments. Fundamentally speaking it is unlikely that the bullish market is over yet and that Bitcoin will not do a new all-time-high within the upcoming months because more and more institutionals and classical economy participants looking to enter the Bitcoin and cryptocurrency space though the demand is there and increasing while the real economy is still riddled by the corona crisis and inflation is accelerating investors look for a hedge in Bitcoin however we should not underestimate the volatility preexisting in the market and prepare on these two scenarios, it will be an important journey.

In this manner, thank you for watching the analysis, it will be great when you support it with a like, follow and comment for more upcoming market analysis, all the best!
"Good fortune is a residue of preparation."

Information provided is only educational and should not be used to take action in the markets.
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